If you've ever had to exchange currency abroad, you know that not all fees are created equal. Exchange at one bank and you may get back what's equal to $100; exchange at another, and it might be more like $92. A few dollars here or there may not be a big deal on a holiday, but when you're talking about thousands of dollars - or millions of pounds - the differences are substantial. That's the reality for many Amazon sellers whose profits are being eaten away by exchange rate fees.
While the convenience of Amazon's built-in currency converter ACCS (Amazon Currency Conversion Service) often encourages sellers to use it without a second thought, that same simplicity also makes it easy to overlook the hidden costs. These fees, coupled with the risk of volatile rates and financial complexities, can eat into a seller's profits and hinder their ability to expand internationally.
In fact, while ACCS fees start out palatable at 0.5% of Total Processed Volume (TPV), they can quickly add up and derail a seller's margins. The good news is that there are ways for Amazon sellers to avoid these fees and keep more of their hard-earned sales.
One way to do this is by using a payment processor that doesn't charge for currency conversions. A company that specializes in cross-border payments, such as WorldFirst, can offer lower rates and eliminate these charges for their clients. In addition to saving money on currency exchange, these companies can also help Amazon sellers shield themselves from future exchange rate volatility and make cost-effective transactions that enhance their profitability.